A range of success stories showcase the value of ecosystem thinking in different industries relating to the energy transition. These are important to emphasise as they recognize the importance of combining a mix of stakeholders, technologies and organizations in interconnected and interdependent ways.
Ask how we can leverage and use Ecosystem thinking and design to promote innovation within the Energy Transition, as it is a powerful approach to radical change. By fostering collaborations and synergies, you can accelerate the development and adoption of innovative solutions for the energy transition.
Before we look at examples of ecosystem thinking and designs applied, we should consider a step-by-step guide to use and apply ecosystem thinking and design applicable to the energy transition.
The theory goes you identify an Ecosystem of like-minded businesses that share a common need to solve a vexing problem, challenge or concept. Then, one party sets up a platform or gains the agreement of one already available, a neutral platform, to use it. Hence, it has all the technology, governance and structure to enable the group to communicate, exchange and build the (emerging) solution to work and then have the structure for it to (rapidly) scale.
The marketplace, the third part, often gets left to last when those achieving this new solution realize it needs a place for actual exchange, a thriving buyer/seller market.
Today, we have witnessed a rapid expansion of the Marketplace on offer. Marketplaces are increasingly being stretched, and the boundaries of their understanding keep extending. We have moved from simply listing, though, to transactional marketplaces ( travel, delivery), full-stack marketplaces (on-demand services- Uber), Market Maker (for homes, cars, jobs) into eCommerce(fashion, groceries) and Direct-to-Consumer( food, banking, wellness, lifestyle and eyewear)
By participating at an Ecosystem level, you are putting clear skin in the game; the platform provider tends to drive the roadmap, provide the governance and often play the lead role. There are so many “neutral” platform providers that much of the technology and engineering solutions can be resolved by using established platforms that many of the tensions, when ecosystems are formed, can fall away, allowing those working on a challenge to focus specifically on that and spend their time breaking down the IP and the returns, building the new solution.
Yet it is the role of the Marketplace that determines increasingly the success. Just reflect on some of the most prominent marketplaces. You have Amazon, Alibaba, Airbnb, Salesforce, Booking, eBay, LinkedIn, etc.
Sometimes, we need to go back to our original roots of thinking to remind ourselves and sometimes refresh the areas of focus we need to emphasise. Today, I focus increasingly on how innovation and ecosystem thinking and design need to combine in the Energy Transition.
I believe Ecosystems in design and thinking must form the future path to travel for innovation, collaborations, invention and growing cooperation. We need to think through more demanding challenges today that are highly complex and to do this with a higher degree of success in valuable outcomes. We need to open our thinking and minds and share knowledge to learn from each other.
A fundamental question to ask: “What do I need to consider for entering into an innovation ecosystem design?”
Energy is a vital part of any country’s ability to be competitive, and we need to recognize that to innovate is the critical enabler to a clean energy future. Today half the world’s capital is invested in energy and its related infrastructure, which is the backbone of any industrial and urbanization strategy.
We need to keep pushing for discoveries, experimentation, and demonstrating. We must nurture innovation and continuously look for ways to facilitate its pathway in the Energy Transition we are presently travelling.
Our economic prosperity will be determined by transforming the energy sector, and it is through innovation we will achieve this. To avoid the predicted consequences of climate change, the global energy system must rapidly reduce its emissions.
Most global CO2 emissions come from the energy production sector, our buildings or transportation systems, and the making of “things” still from fossil fuels. They all need a purposeful design of a new, cleaner energy system.
Innovation needs to be at the top of its game, to be accelerated and scaled.
During May and June 2023, I worked through and concluded my thinking on why we needed to change our Innovation approach from far to often a linear one, and consider a new, more up-to-date, and dynamic solution for managing innovation, one that recognises the non-linear nature of so much of our undertakings today in innovation, from discovery to commercialisation.
I have called this the Composable Innovation Enterprise Framework– here is why and what went into this proposal that I feel should be adopted for managing innovation in the future.
As the investigation, validation, and viewpoints were built up over several posts, I felt summarising the series here gives you the appetite to delve into the posts themselves.
We need to shift our innovative thinking from static to dynamic.
We have been in very static, traditional approaches to innovation, very segmented and often insular, and as so often happens in innovation, it has complexities that seemingly grow and multiple changes, partly from what we discover in the development of new solutions but partly from far more rapid changes in the business landscape and our current innovation process often breaks down and limits the ability to manage this across the whole development to delivery lifecycle.
We need systems and processes that are flexible, adaptable, and can enable continuous improvements but are fully connected, transparent, and integrated across the entire business. We need to approach innovation differently through connected agility, have speed and automation more central, and provide roles for a great diverse set of participants.
A system that encourages forming strategic alliances, partnerships, and knowledge sharing to drive innovation and create shared value in open, thoughtful, and collaborative ways. This is where technology enables these connections and triggers different thinking in the quest for moving toward more extraordinary valuable solutions—the “connected” value of behaviours thinking ecosystems and operating on collaborative platforms.
I believe that innovation ecosystems transform how we approach and manage innovation.The value is in developing them outand here is why
By embracing the power of ecosystems, we can tap into the collective intelligence and resources of diverse partners, leading to breakthrough solutions and sustained growth. This document will explore the key aspects of innovation ecosystems and their value proposition.
Opening up our thinking toward ecosystems has a powerful effect: As we shift our mindset to embrace ecosystems, we experience a profound shift in our perspectives. Engaging different partners fosters emergent thinking and evolves our approach to managing relationships within these ecosystems.
Increased interactions and tightly controlled activities drive synergies: Ecosystem designs require enhanced interactions within the community. Activities within the ecosystem need to be tightly controlled to unlock the synergistic effects. Effective relationship management becomes crucial in driving innovation and adapting to the evolving ecosystem concept.
Agility and strong orchestration are essential for new business models: Ecosystems that give rise to new business models require a high capacity for agility within participating organizations. The dynamics of these ecosystems stretch internal capabilities and competencies. A strong orchestrator is needed to manage the challenges and cultural biases that can hinder progress.
Aligning partners based on needs rather than organizational priorities: Aligning partners within an ecosystem is different from aligning them solely to one organization’s needs. In the past, we adapted to the requirements of dominant organizations. In an ecosystem, partners align based on the platform’s needs, requiring a shift in perspective and a collaborative approach.
Nurturing the health of the ecosystem: The health of an ecosystem depends on three fundamental aspects: a. Recognizing the value each participant brings to the ecosystem, even if their values differ. b. Achieving critical mass within the ecosystem enhances robustness and maximizes combined effects. c. Fostering continuous performance and improvement through joint learning, leading to optimization effects and increased relevance.
Assessing partners’ capabilities and managing strategic questions: Assessing partners’ ability to deliver their commitments is crucial, as it is often an unknown factor. Strategic questions need to be addressed, such as measuring the offering’s value within the ecosystem, understanding dependencies, managing risk, and estimating the timing for adoption.
The value of collaboration in tackling complex challenges: Innovation ecosystems offer significant benefits when addressing complex challenges that no single organization can solve alone. By fostering collaboration, knowledge exchange, and discovery, these ecosystems enable the development of innovative solutions that leverage diverse expertise.
The power of digital platforms and ecosystem design: Digital platforms play a central role in enabling collaborative environments within innovation ecosystems. Ecosystem design relies on building networks and relationships around valuable focal points, allowing for continuous interactions, knowledge sharing, and co-creation.
Benefits of innovation ecosystems: Participating in innovation ecosystems offers several advantages, including a. Access to a broader range of resources and expertise. b. Increased collaborations and co-creation opportunities. c. Scalability and speed in innovation efforts. d. Flexibility and adaptability in response to market changes. e. Potential for sustainability and social impact.
Conclusion:
Innovation ecosystems provide a powerful framework for driving collaborative innovation and unlocking new value. By embracing these ecosystems, organizations can tap into the collective intelligence, resources, and diverse perspectives necessary to tackle complex challenges, achieve sustainable growth, and make a lasting impact.
Through digital platforms and strategic partnerships, we can shape the future of innovation and create a more connected and prosperous world.
There needs to be a fundamental shift in how we manage innovation, which needs the power of ecosystem thinking and design. Not only in thinking and design but in how we structure its architecture, one based on platforms, open apps, and a marketplace where like-minded people and organizations go and participate in building new impactful innovation solutions together. This needs to be in open, highly collaborative ecosystems.
We need a better conceptual framework to build, one based on knowledge-based intelligence and well-grounded, driven by dynamic and constant interactions, events, and processes, so all involved can be engaged in building solutions that have fresh impact and value within the market space identified.
My mind map of the over-arching aims of a new innovation narrative is shown below.
Innovation & Ecosystems need to be our new thinking of design and delivery
An ecosystem approach on a common, shared technology platform that can significantly enhance the discovery, experimentation, exchange, exploring, and exploiting all the diverse skills and expertise from idea to commercialization and life cycle development and maturity.
The increased pace of change requires the ability to deploy, activate and utilize resources and assets to extract the potential through the diversity of the network formed within the ecosystem and the relationships engaged in the mutual pursuit
The end result needs to show actual robustness, genuinely dynamic and holistic in its dimensions and offerings, proving among its metrics faster learning rates, leveraging all that a technology-enabled platform offers, actual collaborations and shared engagements, supporting knowledge, data, insights, and people.
Open Collaboration needs to be top of mind
Innovation needs to rely increasingly on interconnected organizations organized around a central focal point of value and impact. An ecosystem design so organizations can act differently on strategies, business models, leadership, and customer engagement to build new value and worth.
We all need to recognize that Innovation and Ecosystems go together they make the potential for more sustainable solutions, they are the new combination that enables your thinking and design of new concepts and solutions to be “worked upon” in a more open, collaborative way where a richer diversity of thinking “comes into play” and the end result has that potential to be so much better than the sum of all the parts, it magnifies the sum!
I can remember getting completely “hooked” on Business Ecosystems by a series from Deliottes and one specific report, introduced and coordinated by Eamonn Kelley, with many contributors including Kelly Machese, Anna Muoio, John Hagel, and Larry Keeley. It was called “Business ecosystems come of age” and maybe it did not change my life, but it gave it a clearer focus- innovation ecosystems. Take a read, it is well worth it, its value then, 2015 has only matured in my mind.
I was also looking at another great piece by Deloitte on tapping into the Silicon Valley innovation ecosystem under a report called “How to Innovate the Silicon Valley Way” that came out in 2016. Another great motivation for focusing on innovation ecosystems.
One question asked in the Silicon Valley piece was “Why should enterprises give up transactional approaches in favor of dynamic, ecosystem-led innovation?
Today I would reverse that question “Why would any company still be locked into transactional approaches only functioning on its own resources?”
Today the struggle is to deal with increasing complexity, undoing the “knot” of difficult challenges and these cannot be undone or solved without collaborations outside one organization’s walls. We need to push this even further and totally accept that the hardest but best collaborations come from being involved in cross-industry or sector innovation systems.
I completed a series of posts in April 2023, published on this posting site, on cross-sector needs when considering or working in innovation ecosystems.
To get to a good understanding of cross-sector innovation ecosystems collaborations, you need to take a very considered holistic view of what is needed in any collaboration, let alone cutting across sectors to generate a successful outcome. All the elements of skills, processes, tools, capabilities, and behaviors are essential in supporting an effective collaboration across sectors that need to be involved.
I have summarized the key points of these four posts; click on the links referred to. I have outlined the multiple needs to consider so you are more aware of the differences and needs of managing within an ecosystem of collaborators.
After a series of posts introducing and explaining the thinking and design behind the Composable Innovation Enterprise Framework, I thought it would be a good idea to put this into a sequence of visuals that should take you through this to provide a decent understanding of its make-up and logic.
Organizations in today’s business environment need to adapt rapidly and dynamically, have the need to bring the innovation management process into a constant technological advancement, and be more tailored in its design by their own specific needs and not “offered” as a rigid set of solutions. We need to embrace a significant change in the way we “set about” innovation.
If you are interested in reading more in the series I have been posting then here are the links in the order of posting.
The importance here is recognizing the shift in mindset and thinking towards a Building Block approach to build up the Innovation Stacks. Each stack “sits” on a technology platform. Thinking through what this means requires understanding, relating, and putting a clear context of innovation, what you want to achieve, and how to set about this.
